Full Press Release Details
Oculus Innovative Sciences Reports Financial
Results for Fiscal Year 2016 and Fourth Quarter Ending March 31, 2016
Product Revenue for Fiscal
Year 2016 Grew 31% Led by Growth in U.S. Dermatology
Conference Call Begins at 4:30pm
PETALUMA, Calif.-(June 16, 2016)-Oculus Innovative
Sciences, Inc. (NASDAQ: OCLS, warrants OCLSW), a specialty pharmaceutical company that develops and markets unique and effective
solutions for the treatment of dermatological conditions and advanced tissue care, today announced financial results for the fourth
quarter and fiscal year 2016 ended March 31, 2016.
Total revenues of $15.1 million increased by $1.2 million, or
9%, for the fiscal year ended March 31, 2016, as compared to $13.9 million for the twelve months ended March 31, 2015. Product
revenue of $13.0 million increased $3.1 million, or 31%, when compared to the same period in 2015. This increase was the result
of strong product revenue growth in the United States of $2.4 million, or 121%, and Europe and rest of world of $798,000, or 27%,
partially offset by a 2% decrease in Latin America due in large part to the decline in the value of the peso against the U.S. dollar.
"In late 2014, we announced our strategic decision to
focus on the U.S. dermatology market with our own dedicated, direct sales force. Starting from a zero base line, we have built
a strong foundation in the dermatology market including hiring an experienced direct dermatology sales team of over 20 people and
launching seven new products with a cumulative 33,100 prescriptions filled. With this foundation, we are more confident than
ever that our plan is bearing fruit and will result in continued and sustainable growth in the dermatology market," said
Oculus CEO Jim Schutz. "Regarding the rest of world, revenue growth in Latin America this past quarter fell from normal
ranges due to a decline of the Mexican peso and our partner's consolidation of their warehouses, causing a quarterly reduction
Results for the Twelve Months Ended March 31, 2016
Oculus reported gross profit of $7.2 million,
or 48% of revenue, for the twelve months ended March 31, 2016, compared to a gross profit of $7.3 million, or 53% of revenue, for
the same period in the prior year. The decrease in overall gross profit was caused by a decline in license and royalty revenues,
which had higher margins than the product revenue. For the twelve months ended March 31, 2016, Oculus reported product gross profit
of $6.0 million, or 46%, compared to product gross profit of $4.0 million, or 41%, for the same period in the prior year. The increase
in product gross profit was primarily related to improved margins in the United States as a result of the launch of higher margin
dermatology products.
Total operating expenses less non-cash expenses increased $3.0
million, or 24%, for the twelve months compared to the same period in the prior year, primarily due to higher costs for the dermatology
sales force. Operating loss less non-cash expenses (EBITDAS) for the twelve months ended March 31, 2016, was $7.9 million, compared
to $4.6 million for the same period last year. The net loss for the twelve months ended March 31, 2015, includes non-cash impairment
losses related to an investment in Ruthigen of $4.7 million, partly offset by a non-cash gain of $3.2 million related to a reduction
in Oculus' derivative liability relating to certain warrants reported in the same period.
Results for the Three Months Ended March 31, 2016
Total revenue was $3.5 million for the fourth quarter, a decrease
of 11%, when compared to $4.0 million for the same period in 2015, due mostly to a decline in royalty and licensing fees. Product
revenues were flat when compared to the same period last year, with an increase in U.S. revenue due to strong growth in dermatology
sales, offset by a decrease in revenue from Latin America due to the decline in the peso, a very robust sales quarter last year
in Mexico and a warehouse consolidation by our distributor.
Product revenue in the United States was $1.4 million for the
three months ended March 31, 2016, as compared to $623,000 in the quarter ended March 31, 2015. Product revenues increased $765,000
or 123%. Sales increased primarily due to continued growth in six existing products for the treatment of atopic
dermatitis, scar management, surgical procedures, an oral anti-infective for severe acne and the launch of Ceramax, which utilizes
a "state of the art" skin repair technology. In addition, sales to a new farm and ranch animal health partner increased
during the quarter compared to last year.
Product revenue in Europe and the rest
of the world for the quarter ended March 31, 2016, of $981,000, increased by $49,000, or 5%, as compared to the same period in
the prior year, with increases in Asia and Europe, mostly offset by a decline in the Middle East.
Product revenue in Latin America for the quarter ended March
31, 2016, was $880,000, a decrease of $833,000, or 49%, when compared to the same period in the prior year. This decrease was caused
by a 22% decline in the value of the peso from the same period in prior year along with very robust sales in the March quarter
of 2015. The fourth quarter of fiscal year 2015 also included stocking by Oculus' new Latin American partner Sanfer to fill
their expansive pharmacy store network. In addition, there was a decline in local currency sales in the quarter ended March 31,
2016, as a result of warehouse consolidations. During the quarter, ended March 31, 2016, Sanfer closed a number of the former More
Pharma warehouses, reducing the need for new product units.
For the three months ended March 31, 2016 and 2015, product
licensing fees and royalty revenues were $75,000 and $455,000, respectively. The decrease is primarily related to the lower amortization
of upfront payments from the company's partner, Sanfer, in Latin America.
Oculus reported gross profit of $1.7 million, or 49% of revenue,
during the three months ended March 31, 2016, compared to a gross profit of $2.0 million, or 50% of revenue when compared to the
same period in the prior year. The gross profit was down slightly compared to last year due to the reduction in higher margined
products, license fees and royalties revenue of $380,000, related mostly to our agreement with Sanfer.
Total operating expenses of $4.6 million for the three months
ended March 31, 2016, increased by $940,000, or 26%, as compared to the same period in the prior year. Operating expenses minus
non-cash expenses during the fourth quarter of fiscal year 2016 were $4.1 million, up $850,000, as compared to the same period
in the prior year. The increase in operating expenses, minus non-cash expenses, was due to mostly higher sales and marketing expenses
in the United States related to the costs of Oculus' direct sales force in dermatology.
Net loss for the quarter ended March 31, 2016, was $2.9 million,
an increase of $1.4 million, as compared to net loss of $1.5 million for the same period in the prior year.
As of March 31, 2016, Oculus had unrestricted cash and cash
equivalents of $7.5 million, as compared with $6.1 million as of March 31, 2015. The company has no debt outstanding.
Oculus' management will hold a conference call today to
discuss fourth quarter fiscal year 2016 results and answer questions, beginning at 4:30 p.m. EDT. Individuals interested in participating
in the conference call may do so by dialing 877-303-7607 for domestic callers or 973-638-3203 for international callers.
Those interested in listening to the conference call live via
the Internet may do so at http://ir.oculusis.com/events.cfm. Please log on approximately 30 minutes prior to the presentation in
order to register and download the appropriate software.
A telephone replay will be available for seven days following
the conclusion of the call by dialing 855-859-2056 for domestic callers, or 404-537-3406 for international callers, and entering
conference code 11222664. A webcast replay will be available on
the site at http://ir.oculusis.com/events.cfm for one year following the call.
About Oculus Innovative Sciences, Inc.
Oculus Innovative Sciences is a specialty pharmaceutical company
that develops and markets unique and effective solutions for the treatment of dermatological conditions and advanced tissue
care. The company's products, which are sold throughout the United States and internationally, have improved outcomes
for more than five million patients globally by reducing infections, itch, pain, scarring and harmful inflammatory responses.
The company's headquarters are in Petaluma, California, with manufacturing operations in the United States and Latin America.
European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.oculusis.com.
Forward-Looking Statements
Except for historical information herein, matters set forth
in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance
of Oculus Innovative Sciences, Inc. and its subsidiaries (the "Company"). These forward-looking statements are identified
by the use of words such as "focus," and "will result," among others. Forward-looking statements in this
press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results
to vary, including such risks that regulatory clinical and guideline developments may change, scientific data
may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results
may not be replicated in actual patient settings, protection offered by the Company's patents and patent applications